NZDUSD Breakout Out Of Bullish Flag

NZDUSD Price Analysis – September 15th

NZD/USD has executed a significant technical breakout from a multi-month descending channel, signaling a clear shift in market momentum. The corrective downtrend that has been in place since July appears to have concluded, with buyers now taking control.

NZDUSD Long Term Trend- Bullish (Daily Chart)

Resistance Zones: 0.597560, 0.60960
Support Zones: 0.59200, 0.58029

The daily chart reveals the broader context of this bullish reversal. After peaking near the 0.60960 resistance level in late June, the pair entered a corrective phase. It forms a well-defined descending channel. Last week, buyers successfully broke out of the top of this channel, a classic technical signal that the preceding uptrend is likely to resume.

The Relative Strength Index (RSI) has decisively crossed above the 50 midline, currently reading 58.30. This indicates that bullish momentum is now driving the price action. The Momentum indicator is positive and rising, further confirming the strength behind the recent upward move. With the breakout confirmed, buyers are likely to target the previous high at 0.60960 as their next major objective. The former channel resistance, around 0.59200, should now act as the first line of support.

NZDUSD Short Term Trend- Bullish (4-hour chart)

The 4-hour chart provides a more detailed view of the breakout and subsequent price action. The break above the channel’s upper trendline was clean and decisive. Since the breakout, the price has been consolidating just below the immediate horizontal resistance at 0.59756. This type of consolidation is often a healthy sign of a market gathering strength before its next move higher.

The short-term trend is firmly bullish, with the RSI on this timeframe holding strong at 63.65, well into bullish territory but not yet overbought. This suggests there is still room for the price to advance before becoming exhausted. A sustained break above the 0.59756 resistance would be the trigger for the next leg up towards the daily target of 0.60960 zone.

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